NN Group to consider further return of capital at end of year

By Jakob Van Calster and Mateusz Rabiega

(Reuters) - Dutch insurer and asset manager NN Group on Friday reported first half earnings which beat market expectations and said it would consider returning further excess capital to shareholders at the end of its fiscal year.

In a press release on Friday, NN said that its results were driven by revenue growth at its European and domestic divisions.

It's Solvency II ratio, which specifies the level of capital insurers are required to hold, stands at 208%, exceeding the 201% consensus found in a company provided poll.

That surpassed the 200% threshold that NN had previously identified as necessary before considering returning excess capital to shareholders.

"We will evaluate the capital return promise at the full year results," group CEO David Knibbe told Reuters.

"If we do something, it will be incremental steps and on a recurring basis," Knibbe said, drawing parallells to NN's previous increase in share buyback volume to 300 million euros from 250 million.

CLIMATE CHANGE

Concern about the impact of severe weather-related catastrophes is growing as global insured losses reach $80 billion for the first half of 2025, with NN Group focusing on flood and drought challenges within the Netherlands.

"A lot of the houses in the Netherlands are built on (submerged) wooden poles. There's a risk that it becomes so dry that those poles will dry, and subsequently get wet again. That means they will start rotting", he said.

NN Group estimates that the number of affected buildings could grow to 400,000 from the current 100,000 in 10 years with an average repair cost estimated between 60-120 thousand euros.

Knibbe added that the insurer and the government are working on a collectively funded scheme to coordinate their differing responsibilities according to flood intensity.

($1 = 0.8578 euros)

(Reporting by Jakob Van Calster and Mateusz Rabiega in Gdansk; Editing by Matt Scuffham)